Exploring Property Ownership Structures in Costa Rica

Thinking about buying a home or land in Costa Rica but unsure how to hold title? You are not alone. The right ownership structure protects your investment, simplifies future sales, and keeps renovation or rental plans on track. In this guide, you will learn the main ways to own property, what changes near the beach, and the steps to close with confidence. Let’s dive in.

Who can own property in Costa Rica

Foreign buyers generally have the same civil rights to acquire and hold real property as Costa Ricans, with a few statutory exceptions that you should check early. This principle is widely recognized in Costa Rican law and commentary on civil rights and property ownership. Costa Rica’s constitutional framework supports equal property rights for foreigners in most areas.

The main exceptions relate to the coastal maritime-terrestrial zone and certain protected or indigenous lands. The coastal strip is specially regulated, and some protected areas or public patrimony have their own rules. Always confirm status with the municipality and the Registro Nacional before you choose a structure or sign a contract. You can start with the Registro Nacional’s real estate registry.

Ownership structures at a glance

Direct title in your name

Holding title in your personal name is common and fully permissible for foreigners in most locations. It is simple and offers direct control.

• Pros: Simple, clear ownership, straightforward resale.
• Cons: Less privacy, potential liability exposure, and you may want estate planning for succession.

Costa Rican corporation (S.A. or S.R.L.)

You can form a local company to hold title. This route is common for investments, multi-owner assets, or when you prefer to transfer shares instead of deeds. Companies are registered with the Registro Nacional’s corporate registry. Learn more about entities and registrations via the Registro Nacional’s organization resources.

• Pros: Added privacy, easier interest transfers, and potential liability separation.
• Cons: Ongoing maintenance, filings, accounting, and compliance with evolving beneficial ownership rules.

Fideicomiso (trust)

A fideicomiso is a contract where a fiduciary holds assets for a purpose or beneficiary. In real estate, it is used for development projects, escrow, financing, or succession planning. The structure and oversight of trusts are discussed in official publications like La Gaceta.

• Pros: Flexible, clear separation of trust assets, helpful for complex or multi-party needs.
• Cons: Requires careful drafting and fiduciary fees, and it does not bypass land-use or coastal rules.

Condominium title

Condos are well defined under Costa Rican law and widely used for apartments and resort units. Ownership is by unit with shared common areas managed by rules registered at the registry. See an overview of the regime in this condominium summary.

Long-term leases and usufruct

When direct title is not preferred, you can separate use and income rights from ownership through long-term leases or usufruct. These rights should be registered to be enforceable against third parties. For context on usufruct, see this overview.

Coastal zones change the rules

Costa Rica’s coastal maritime-terrestrial zone is generally a 200-meter strip measured from the ordinary high tide line. The first 50 meters are public and inalienable, while the next 150 meters can be granted under municipal concession for defined terms. Review the government’s guidance on the maritime-terrestrial zone and concessions.

Concessions are not the same as fee-simple title and come with eligibility limits and public-interest rules. Some categories, such as certain non-resident foreigners or companies with specific ownership profiles, may face limits on receiving concessions. Coastal parcels can also see disputes over access or boundaries, as reported in cases like Playa Blanca’s long-running dispute. If you are considering beachfront, confirm the exact maritime boundary, zoning, environmental status, and any concession terms before you choose a structure.

Coastal due diligence checklist

• Obtain the cadastral plan and verify the maritime boundary at the Registro Nacional.
• Request municipal confirmation of any concession and permitted uses.
• Check environmental overlays with the municipality and relevant agencies.
• Align your ownership vehicle with concession eligibility rules before contracting.

How to choose your structure

• You want simplicity for a single home you will hold personally: consider direct title.
• You plan partners, future equity transfers, or liability separation: consider a Costa Rican corporation.
• You need escrow, development financing, or tailored succession: discuss a fideicomiso with counsel.
• You prefer a defined regime for an apartment or resort unit: a condominium can be straightforward.
• You need to separate use from ownership or plan family use rights: explore long leases or usufruct.

Registration, due diligence and closing

A clean process protects you on price, timing, and future projects.

1. Pull official title records. Request the certificado de dominio and encumbrance report, prior deeds, and the cadastral plan from the Registro Nacional.
2. Check liens and lawsuits. Confirm there are no mortgages, court actions, or third-party claims recorded at the registry.
3. Verify zoning and special zones. Confirm municipal land use. For coastal parcels, verify maritime status and any concession, and review environmental considerations. See context on frequent disputes like Playa Blanca.
4. Confirm the survey. Obtain an updated cadastral plan from an authorized surveyor and confirm it matches what is recorded.
5. Hire an abogado-notario. Property transfers require a notarial public deed. Many buyers also retain a separate attorney for due diligence and to manage escrow. See a practical overview of closing mechanics and escrow in this market guide.
6. Budget for costs and taxes. Expect notary and registry fees, municipal charges, and any fiduciary or corporate maintenance costs. Use the Registro Nacional and official publications like La Gaceta to confirm current schedules and tax rules.

Privacy, succession and compliance

Costa Rica’s title records are public, which is why some buyers use corporations or trusts for privacy and flexibility. Beneficial ownership transparency rules continue to evolve, so confirm current disclosure requirements with counsel and the corporate registry. See background on registry organization and reporting via the Registro Nacional’s resources.

For succession, Costa Rican inheritance law has mandatory heir rules, so plan your estate with a local attorney. Some buyers use a fideicomiso for predictable transfers or management. You can review official references to fiduciary structures in La Gaceta.

Mistakes to avoid

• Skipping a maritime-terrestrial review before pursuing beachfront property or a concession.
• Ignoring unrecorded occupancy risks or adverse possession claims. Case law shows disputes can arise, so thorough checks matter. See an example of adverse possession litigation.
• Starting renovations without confirming zoning, environmental approvals, or condominium bylaws.
• Forming a company or trust without understanding annual maintenance and reporting.

Turn your plan into a project

The best structure supports what you want to do next, from a serene second home to a high-performing rental or a ground-up build. Once your due diligence is clear, you can align title, renovation scope, and permitting so your property is ready for living or launch. If you want a single partner to help you find the right property and then design, renovate, and deliver it, connect with Bryana Conway to get started.

FAQs

Can a U.S. citizen hold Costa Rican property in their own name?

• Yes. Foreigners generally have the same rights to hold title as Costa Ricans, with exceptions in areas like the maritime-terrestrial zone and certain protected or indigenous lands, so confirm status before you buy. See the constitutional framework and check records at the Registro Nacional.

What is Costa Rica’s maritime-terrestrial zone and how does it affect beachfront purchases?

• It is typically a 200-meter strip from the high tide line. The first 50 meters are public, and the next 150 meters can be granted under municipal concession for specific terms with eligibility limits. Review official commentary on maritime concessions.

Should I buy through a Costa Rican corporation or in my personal name?

• If you value simplicity and plan to hold personally, direct title is common. If you want liability separation, multiple investors, or easier share transfers, a corporation can help, with added maintenance and reporting via the corporate registry. See registry resources on entities here.

What due diligence should my attorney complete before I sign a purchase contract in Costa Rica?

• Verify ownership and encumbrances at the Registro Nacional, confirm zoning and environmental status, check maritime boundaries or concessions for coastal parcels, obtain an updated cadastral plan, and review taxes and municipal charges.

What closing costs and taxes should I expect when buying property in Costa Rica?

• Budget for notary and registry fees, transfer and stamp taxes, municipal charges, and any corporate or fiduciary maintenance. Confirm current schedules with the Registro Nacional and recent publications like La Gaceta.

How long does a property purchase usually take in Costa Rica?

• Cash deals can close in weeks once due diligence is complete, while financed purchases often take longer. Escrow and clear documentation help keep the timeline on track. See process context in this market overview.